Etihad’s investment in Jet Airways to be completed in a few months

India’s Jet Airways expects investments by Abu Dhabi’s Etihad Airways in the airline to be completed within the next few months, Jet chairman, Naresh Goyal, wrote in the company’s annual report.

In April, Etihad agreed to buy a 24 per cent stake in Jet for $379 million. It is also making a $150m equity investment in Jet’s frequent flyer programme, and spent $70m to buy Jet’s three pairs of Heathrow slots through a sale and leaseback agreement announced in February.

“All these investments…are subject to obtaining the requisite regulatory and corporate approvals and final commercial agreements, which is expected to be completed within the next few months,” Goyal wrote to the shareholders.

The deal also needs to be cleared by the capital markets regulator and will need a final approval from a cabinet panel on investments.

Etihad’s investment in Jet, which is the first by a foreign operator in an Indian airline since ownership rules were relaxed, is yet to win regulatory approval. Last month, India’s Foreign Investment Promotion Board (FIPB) deferred a decision seeking more details on “effective control”.